Latvia Tax Agency Issues Methodological Material Clarifying VAT on Land Unit Sale

The Latvian State Revenue Service June 3 issued methodological material clarifying VAT on the sale of land units with infrastructure. The taxpayer, a limited liability company, sought clarification on VAT for sales of newly-created land plots with added infrastructure, and whether such infrastructure qualified as unused real estate for VAT purposes. The Tax Agency clarified that: 1) VAT applied to the land plot sales, because they were considered building land due to the existence of a valid building permit; 2) the infrastructure, including water, sewage, and storm drainage systems, weren’t considered unused real estate; and 3) the change in the ...